Ark Invest CEO Expects Bitcoin To Recover After Fed Flip

The crypto and new tech investment company is sure that inflation will go down and the Fed will change course in 2023.

As inflation lowers and the Fed reverses course, Ark Invest’s CEO predicts a big year for crypto assets.

In a January 23 business video blog, Ark Invest CEO and CIO Cathie Wood discussed the economy. She said there were many signs that inflation would go down, which suggests that the Fed should change direction soon.

As the macroeconomic outlook improves and people loosen their financial belts, this would be good for risky assets like cryptocurrency.

She also stated the business expects inflation to drop to 2%, as the Fed desires. Inflation might drop below this level or even go negative, Wood warned, because the money supply has been decreasing.

She said, “We think that will come in the first half of 2023.” The market is waiting for a sign from the Federal Reserve. She stated that Ark Invest portfolios should perform very well if interest rates fall below what is expected.

Ark offers a crypto asset fund, blockchain venture investments, disruptive innovation fund, and six technology and fintech ETFs.

Brett Winton, Ark’s Chief Futurist, talked about artificial intelligence (AI) and said that progress would speed up in 2023. He also said this year would be a significant change for crypto assets.

“Public blockchains, cryptocurrencies, and crypto assets which are going through a bumpy period right now, are going to become even more differentiated for their scarcity in an age of abundance.”

He added that when there is a turn in the macro environment and the Fed “changes its spots.” The opportunity for “expansion and value realization within the venture and public market space is even larger.”

Wood concluded that these technological innovations are deflationary. Which will cause a boom in the products and services associated with this innovation.

Ark Invest recently sold some Grayscale Bitcoin Trust (GBTC) shares profitably and bought about $17.6 million in Coinbase (COIN) shares.